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zesty

  • Posts: 2452
Talk to me about franchising please
« on: May 11, 2024, 07:21:04 am »
Idiots guide please.

Please let me know:

- How you go about it.

- What you did to set it up.

- What it cost initially.

- How much work did you/do you give the franchisee on setup.

- What fee the franchisee pays you per month.

- How you delegate new work.



Basically tell me how it all works.

I would like to explore this avenue.

Thanks for any advice and help.

deeege

  • Posts: 5008
Re: Talk to me about franchising please
« Reply #1 on: May 11, 2024, 08:07:38 am »
Why anyone would pay to franchise a business like window cleaning, from a company without any brand recognition, is completely beyond me.

Macdonalds, Subway, KFC I can understand. Using their systems and brand to get a head start but a low barrier to entry business like window cleaning, carpet cleaning, drain unblocking etc it just very rarely works long term for the franchisee.

(I know there are a few outliers on here that have made a success of it, but they are very few and far between)



"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

AuRavelling79

  • Posts: 25379
Re: Talk to me about franchising please
« Reply #2 on: May 11, 2024, 08:29:49 am »
Why anyone would pay to franchise a business like window cleaning, from a company without any brand recognition, is completely beyond me.

Macdonalds, Subway, KFC I can understand. Using their systems and brand to get a head start but a low barrier to entry business like window cleaning, carpet cleaning, drain unblocking etc it just very rarely works long term for the franchisee.

(I know there are a few outliers on here that have made a success of it, but they are very few and far between)

You - just as I have - have the self employed mindset. I think Franchisee types often transition from employment and so have the mindset of wanting to earn immediately. (Maybe they have been made redundant and are physically OK and are looking for a stress free life.)

So they might have money in their back pocket. They may have never knocked a door to sell in their life (is this partly why so many JW's are window cleaners?  ;D).

If they can turnover 3/4/5K a month and 'only' give up 600/800/1000 they may feel that's not a bad deal.

At least initially.

Three years in they might think I can do this myself.

So to any franchisee I would advise  talk to other franchisees in the field you are in - especially others from the same franchisor - and check what you are signing up for.

It's a game of three halves!

Smudger

  • Posts: 13438
Re: Talk to me about franchising please
« Reply #3 on: May 11, 2024, 09:41:26 am »
Great post - this is exactly why people franchise - similar why people are employed

We have all done the hard yards starting up - risking it all and make a living out of it now we are though that we look back thinking anyone can do it - that’s just of the case
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

zesty

  • Posts: 2452
Re: Talk to me about franchising please
« Reply #4 on: May 11, 2024, 04:44:51 pm »
Why anyone would pay to franchise a business like window cleaning, from a company without any brand recognition, is completely beyond me.

Macdonalds, Subway, KFC I can understand. Using their systems and brand to get a head start but a low barrier to entry business like window cleaning, carpet cleaning, drain unblocking etc it just very rarely works long term for the franchisee.

(I know there are a few outliers on here that have made a success of it, but they are very few and far between)

Yes, but that’s us. There are plenty of people out there that would.

I’m interested in seeing how well it works for those that have done it. If it seems a good way to grow the business and do less ‘on the tools’  myself, then I’m all for it.

Employing is the other option, of course.

Stoots

  • Posts: 6211
Re: Talk to me about franchising please
« Reply #5 on: May 12, 2024, 03:50:43 pm »
I got myself a franchise agreement off a guy who does it, he was selling them for £1500. I cant share because im not supposed to use it without paying for it, its copyrighted apparently. 

I would get in touch with Vin (perfect windows) see if he can help, i spoke to him a few years ago and he kindly explained a lot of the process to me.

Perfect Windows

  • Posts: 4179
Re: Talk to me about franchising please
« Reply #6 on: May 13, 2024, 04:16:49 pm »
I got myself a franchise agreement off a guy who does it, he was selling them for £1500. I cant share because im not supposed to use it without paying for it, its copyrighted apparently. 

I would get in touch with Vin (perfect windows) see if he can help, i spoke to him a few years ago and he kindly explained a lot of the process to me.

Did you buy off Ian Lancaster? That's the person I'd recommend talking to if you want a contract.

We've just (four weeks ago) started franchisee number seven. So far they all seem pretty content (this one was encouraged to speak to us by franchisee number six, so we appear to be keeping people happy - and number four was recommended by number one). There are plenty of people out there who don't want to make the jump from a job that pays every month or week to start a business with a customer list comprising a blank sheet of paper.

Happy to talk to anyone about franchising - my number isn't hard to find.

Vin

Ggh

  • Posts: 1776
Re: Talk to me about franchising please
« Reply #7 on: May 15, 2024, 06:17:23 am »
Could you run the business from abroad? I want to sell up and be a digital nomad. Be good to have some money coming in from a franchise.

Perfect Windows

  • Posts: 4179
Re: Talk to me about franchising please
« Reply #8 on: May 15, 2024, 09:00:29 am »
Could you run the business from abroad? I want to sell up and be a digital nomad. Be good to have some money coming in from a franchise.

Honestly?  No.  The franchisees would soon work out that you're doing nothing at all for them.  Franchising is a partnership and if you approach it as just a way of making money, it'll fall to pieces.

Here's an example. If a franchisee phones, no matter what I'm doing, I'll check if it's urgent and, if it is, I'll deal with it then.  If there's a problem with van or equipment, I'll suggest a fix over the phone. If it can't be fixed and is affecting his ability to work, I'll drop what I'm doing and drive to where he is to fix it and, if it's fixable, I'll spend however long it takes to get them back earning again.  It's part of the deal.

Bizarrely, renting out work seems to bring in a similar percentage and sounds much more suited to what you're thinking of.

Vin

Arnold Palmer

  • Posts: 20776
Re: Talk to me about franchising please
« Reply #9 on: May 15, 2024, 10:58:11 am »
Could you run the business from abroad? I want to sell up and be a digital nomad. Be good to have some money coming in from a franchise.

If you are willing to invest in back end support (admin and practical) then I see no reason why not.

Obviously you're going to need a few franchisees to make that viable, and it will cut into your margins.

Stoots

  • Posts: 6211
Re: Talk to me about franchising please
« Reply #10 on: May 15, 2024, 01:34:04 pm »
I think you could run any business from abroad these days.

You could probably go on the laptop find an employee and train him via video. All customers can be gained online. There's no real need to physically do anything.

Doesn't sound like much of a retirement though.

Perfect Windows

  • Posts: 4179
Re: Talk to me about franchising please
« Reply #11 on: May 15, 2024, 02:31:24 pm »
I think you could run any business from abroad these days.

You could probably go on the laptop find an employee and train him via video. All customers can be gained online. There's no real need to physically do anything.

Doesn't sound like much of a retirement though.

Not sure how you deal with a broken core component of their equipment, unless (as suggested by Soupy) you have someone in the UK lined up to fix the problem.

Vin

Ascjim

  • Posts: 220
Re: Talk to me about franchising please
« Reply #12 on: May 15, 2024, 03:05:12 pm »
Could you run the business from abroad? I want to sell up and be a digital nomad. Be good to have some money coming in from a franchise.

I spend 9 weeks in Spain each year with employees.

KS Cleaning

  • Posts: 3952
Re: Talk to me about franchising please
« Reply #13 on: May 15, 2024, 03:59:54 pm »
Could you run the business from abroad? I want to sell up and be a digital nomad. Be good to have some money coming in from a franchise.

I spend 9 weeks in Spain each year with employees.
That’s very kind of you, do you have any jobs going?😜

Ian Lancaster

  • Posts: 2811
Re: Talk to me about franchising please
« Reply #14 on: May 16, 2024, 02:25:40 pm »
Thanks for the recommendation Vin  :)

I've been running my franchise organisation since 2006, had a few hiccups along the way but nothing too serious.  Major benefits are that you need no investment to get started, no tax/NI involvement, franchisees do all their own scheduling, invoicing, trouble shooting etc - all the sorts of things that take up so much time when you're employing.  Only drawbacks are that you have less control, it's (slightly) easier for a franchisee to go rogue than an employee and returns are less per head than employing.

I haven't done any 'on the tools' work since 2009 and I've had a good (and steadily increasing) income throughout.  Now approaching my 80th birthday, Lise and I are finally retiring on 31st August.

Altogether very, very glad I started my organisation 18 years ago at the age of 62 ;D

Stoots

  • Posts: 6211
Re: Talk to me about franchising please
« Reply #15 on: May 16, 2024, 04:26:54 pm »
I think you could run any business from abroad these days.

You could probably go on the laptop find an employee and train him via video. All customers can be gained online. There's no real need to physically do anything.

Doesn't sound like much of a retirement though.

Not sure how you deal with a broken core component of their equipment, unless (as suggested by Soupy) you have someone in the UK lined up to fix the problem.

Vin

Sure you could have someone in the know to help them with it. But even then i think the equipment is that simple you could instruct someone over a video call.

Smudger

  • Posts: 13438
Re: Talk to me about franchising please
« Reply #16 on: May 16, 2024, 11:45:13 pm »
Stoots - I think your just missing the point
Its not collect the dosh and walk away type of thing
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Stoots

  • Posts: 6211
Re: Talk to me about franchising please
« Reply #17 on: May 17, 2024, 04:17:06 pm »
Stoots - I think your just missing the point
Its not collect the dosh and walk away type of thing

Im not talking about walking away im talking about running it from abroad remotely,


Smudger

  • Posts: 13438
Re: Talk to me about franchising please
« Reply #18 on: May 17, 2024, 06:28:36 pm »
Well you are if your abroad - I’d be quite p!seed investing several grand and ongoing fees to only get the franchiser only accessible by phone or email

Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Always shining

  • Posts: 124
Re: Talk to me about franchising please
« Reply #19 on: May 17, 2024, 07:02:45 pm »
Been looking in to the franchise model. I’m pretty clear on most of it but could somebody clarify if you actually provide the client list for your franchisee?